The increases planned for main and auxiliary pensions amount to additional public spending of 0.22 percent of gross domestic product, or 434 million euros, for 2020, but expenditure on pensions as a share of GDP is reduced from 14.8 percent to 14.6 percent this year, mainly thanks to the abolition of the pre-election handout of last spring, branded then the "13th pension."
Labor Minister Yiannis Vroutsis said Monday that a new bill on social insurance which will soon be tabled in Parliament will rectify injustices inflicted upon the country's pensioners.
The new legislation, Vroutsis said, will ensure that retired farmers will be able to continue their professional activities without any cuts to their pensions.
The Labor Ministry's pilot program titled "Greece Again" and described at its launch as an "emblematic initiative" hopes to convince some 500 highly qualified Greek professionals aged 28-40 who are currently working abroad to come back home. How? By promising a minimum gross salary of 3,000 euros a month.
As part of its goal to ease the burden on businesses and to increase disposable incomes, the government has made the final tweaks to its four-year plan to gradually reduce wage contributions.
The plan has been incorporated into the social security bill which will be ratified in Parliament in January and is expected to take effect in July.
Labor Minister Yiannis Vroutsis has rebuffed a Reuters report that Greece plans to sell billions of euros of social security contributions owed to its EFKA pension fund to private investors to get cash upfront and facilitate recovering other receivables.
"There are no plans to sell 12 billion euros of legacy arrears, Vroutsis said in a statement issued Thursday.